Legislature(2003 - 2004)

04/15/2003 09:05 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 15, 2003                                                                                         
                           9:05 a.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Gary Stevens, Chair                                                                                                     
Senator John Cowdery, Vice Chair                                                                                                
Senator Fred Dyson                                                                                                              
MEMBERS ABSENT                                                                                                                
Senator Gretchen Guess                                                                                                          
Senator Lyman Hoffman                                                                                                           
COMMITTEE CALENDAR                                                                                                            
SENATE BILL NO. 152                                                                                                             
"An Act relating to concealed handguns."                                                                                        
     MOVED SB 152 OUT OF COMMITTEE                                                                                              
SENATE BILL NO. 162                                                                                                             
"An Act  relating to a tobacco  product manufacturer's compliance                                                               
with  certain statutory  requirements regarding  cigarette sales;                                                               
and providing for an effective date."                                                                                           
     MOVED SB 162 OUT OF COMMITTEE                                                                                              
SENATE BILL NO. 119                                                                                                             
"An  Act  eliminating  the   Alaska  Public  Offices  Commission;                                                               
transferring  campaign, public  official, and  lobbying financial                                                               
disclosure record-keeping  duties to  the division  of elections;                                                               
relating   to  reports,   summaries,   and  documents   regarding                                                               
campaign,  public official,  and  lobbying financial  disclosure;                                                               
providing  for  enforcement  by the  Department  of  Law;  making                                                               
conforming statutory  amendments; and providing for  an effective                                                               
     MOVED CSSB 119 (STA) OUT OF COMMITTEE                                                                                      
HOUSE BILL NO. 34                                                                                                               
"An Act  relating to negotiated regulation  making; and providing                                                               
for an effective date."                                                                                                         
     MOVED HB 34 OUT OF COMMITTEE                                                                                               
CS FOR HOUSE BILL NO. 114(JUD)(title am)                                                                                        
"An Act relating to the issuance of a search warrant upon the                                                                   
sworn testimony or affidavit of a person communicated by                                                                        
telephone, other appropriate means, or facsimile machine."                                                                      
     MOVED CSHB 114 (JUD)(title am) OUT OF COMMITTEE                                                                            
PREVIOUS ACTION                                                                                                               
SB 119 - No previous action to record.                                                                                          
SB 152 - No previous action to record.                                                                                          
SB 162 - No previous action to record.                                                                                          
HB 34 - No previous action to record.                                                                                           
HB 114 - No previous action to record.                                                                                          
WITNESS REGISTER                                                                                                              
Senator Ralph Seekins                                                                                                           
Alaska State Capitol, Room 125                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Sponsor SB 152                                                                                            
Brian Judy                                                                                                                      
NRA representative                                                                                                              
555 Capitol Mall, Suite 625                                                                                                     
Sacramento, CA 95814                                                                                                            
POSITION STATEMENT: Testified on SB 152                                                                                       
Mike Barnhill                                                                                                                   
Assistant Attorney General                                                                                                      
Department of Law                                                                                                               
PO Box 110300                                                                                                                   
Juneau, AK  99811-0300                                                                                                          
POSITION STATEMENT: Testified on SB 162                                                                                       
Johanna Bales                                                                                                                   
Department of Revenue                                                                                                           
PO Box 110400                                                                                                                   
Juneau, AK  99811-0400                                                                                                          
POSITION STATEMENT: Testified on SB 162                                                                                       
Kevin Jardell                                                                                                                   
Assistant Commissioner                                                                                                          
Department of Administration                                                                                                    
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION STATEMENT: Testified on SB 119                                                                                       
Brooke Miles                                                                                                                    
Public Offices Commission Director                                                                                              
Department of Administration                                                                                                    
2221 E. Northern Lights, Room 128                                                                                               
Anchorage, AK 99508-4140                                                                                                        
POSITION STATEMENT: Testified on SB 119                                                                                       
Laurie Churchill                                                                                                                
P.O. Box 7043                                                                                                                   
Nikiski, AK 99635                                                                                                               
POSITION STATEMENT: Testified on SB 119                                                                                       
Barbara Cotting                                                                                                                 
Staff to Representative Jim Holm                                                                                                
Alaska State Capitol, Room 110                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Introduced HB 34                                                                                          
Doug Wooliver                                                                                                                   
Administrative Attorney                                                                                                         
Alaska Court System                                                                                                             
303 K St.                                                                                                                       
Anchorage, AK  99501-2084                                                                                                       
POSITION STATEMENT: Testified on HB 11487                                                                                     
ACTION NARRATIVE                                                                                                              
TAPE 03-19, SIDE A                                                                                                            
CHAIR GARY STEVENS called the Senate State Affairs Standing                                                                   
Committee meeting to order at 9:05 a.m. Present were Senators                                                                   
Dyson, Cowdery and Chair Gary Stevens.                                                                                          
The first order of business was SB 152.                                                                                         
                   SB 152-CONCEALED HANDGUNS                                                                                
SENATOR RALPH SEEKINS, bill sponsor, paraphrased the sponsor                                                                    
     In 2002 SB  242 was introduced to  simplify and clarify                                                                    
     the  procedures   for  recognizing   concealed  handgun                                                                    
     permits  for  other states.  As  a  result of  a  floor                                                                    
     amendment offered late in  the session, recognition was                                                                    
     limited to  those permits held  by individuals  who had                                                                    
     not had a permit denied or revoked.                                                                                        
     Although  the  amendment  appeared  reasonable  on  the                                                                    
     surface,  it  had  unintended consequence.  Texas,  the                                                                    
     second  most  populous  state in  the  nation,  refused                                                                    
     reciprocity with  the State of  Alaska. The  refusal is                                                                    
     technically  bureaucratic  in  nature, yet  presents  a                                                                    
     barrier  to reciprocity.  SB  152  attempts to  resolve                                                                    
     this issue.                                                                                                                
     The  first  section  of   the  bill  recognizes  permit                                                                    
     holders from  other states as  valid permit  holders in                                                                    
     Alaska. The second section  of the legislation requires                                                                    
     the Alaska  Department of Public  Safety to  enter into                                                                    
     reciprocity  agreements with  other states  when it  is                                                                    
     necessary to benefit Alaska permit holders.                                                                                
The House amended the companion bill  and he was in agreement. In                                                               
section  2  (b)  they  inserted language  "that  have  the  legal                                                               
authority  to enter  into such  agreements" between  "states" and                                                               
CHAIR GARY  STEVENS noted the  bill would move to  Judiciary next                                                               
and it could be amended at that time.                                                                                           
SENATOR JOHN COWDERY asked how  many states provide for concealed                                                               
SENATOR   SEEKINS   replied  most   states   did   and  the   NRA                                                               
representative might have the exact number.                                                                                     
SENATOR COWDERY  asked how many  Alaskans held  concealed handgun                                                               
SENATOR SEEKINS deferred the question to Brian Judy.                                                                            
There were no further questions for Senator Seekins.                                                                            
BRIAN JUDY,  NRA representative, spoke  in support of SB  152 and                                                               
the proposed amendment. The bill  is a technical change and would                                                               
have no substantive  impact on Alaska. The intent is  to open the                                                               
recognition of Alaska permits by other states.                                                                                  
In response  to Senator  Cowdery's questions,  he said  there are                                                               
just  over  17,600 Alaskan  permit  holders.  Forty three  states                                                               
issue permits to law-abiding citizens  and of those, there are 25                                                               
that currently  recognize permits issued to  law-abiding citizens                                                               
from other states including Alaska.                                                                                             
SENATOR FRED  DYSON asked him to  comment on the fact  that there                                                               
have been few cases in  which someone with a conceal-carry permit                                                               
used their weapon improperly and on  the number of cases in which                                                               
conceal-carry  permit holders  have  stopped  crimes in  progress                                                               
and/or aided public safety officers.                                                                                            
MR. JUDY  said they are  finding that although the  criterion for                                                               
issuance differs  from state to  state, permit  holders virtually                                                               
never cause problems.  Also, a number of studies  have found that                                                               
in states with conceal-carry permits  crimes did stop. In Alaska,                                                               
violent  crime  increased through  the  early  1990s. The  Alaska                                                               
conceal-permit  law  passed in  1995  and  violent crime  dropped                                                               
dramatically in the years 1996-1998.                                                                                            
SENATOR  DYSON  noted  in  some  states  the  police  have  given                                                               
instruction  in  firearm safety  to  domestic  violence and  rape                                                               
victims  and have  seen a  significant drop  in those  crimes. He                                                               
asked if he remembered that research.                                                                                           
MR. JUDY  did recall  that happening in  a Florida  community. In                                                               
response to  an increase  in crime,  the chief  of police  held a                                                               
well-publicized  series of  firearm  safety courses  specifically                                                               
for  women  and issued  conceal-weapon  permits  on an  emergency                                                               
basis. The incidence of rape nearly disappeared immediately.                                                                    
There were no further questions.                                                                                                
SENATOR COWDERY made a motion to  move SB 152 and attached fiscal                                                               
note  from  committee  with unanimous  consent.  There  being  no                                                               
objection, it was so ordered.                                                                                                   
              SB 162-CIGARETTE SALES REQUIREMENTS                                                                           
MIKE BARNHILL,  Assistant Attorney  General, spoke in  support of                                                               
SB  162.  His  full  testimony  as well  as  the  background  and                                                               
sectional analysis are in the bill file.                                                                                        
The bill relates to the  1998 Tobacco Master Settlement Agreement                                                               
(MSA),  which  gives  Alaska  a  stream  of  revenue  that  lasts                                                               
indefinitely. However,  there are  a number  of ways  the revenue                                                               
stream  could be  reduced, one  of which  is a  non-participating                                                               
manufacturer  adjustment (NPM).  To avoid  such an  adjustment, a                                                               
model statute was  adopted in 1999 to level  the economic playing                                                               
field between  tobacco manufacturers that participate  in the MSA                                                               
and  tobacco  manufacturers  that  don't.  It  requires  NPMs  to                                                               
deposit approximately  1.5 cents into escrow  for every cigarette                                                               
they sell  in the state.  The Department of Revenue  advises NPMs                                                               
of their obligations  under Alaska law and if  they don't comply,                                                               
the case is referred to the Department of Law.                                                                                  
For example, a  company in India makes  candy flavored cigarettes                                                               
and about  100,000 were  sold in  Alaska without  compliance. The                                                               
Department of Law  filed a suit, which entailed  hiring a process                                                               
server to  carry the  complaint summons to  India. To  avoid this                                                               
expense in  the future, Alaska enacted  complimentary legislation                                                               
designed to diligently  enforce statutes. If a  company failed to                                                               
comply  with  Alaska  law,  it  went  on  to  a  list  and  their                                                               
cigarettes were  labeled contraband and Alaska  distributors were                                                               
prohibited from  selling those  cigarettes. Many  states followed                                                               
suit  but the  legislation was  a bit  different in  every state.                                                               
Finally the  National Association of Attorneys  General worked to                                                               
prepare a uniform bill and SB  162 is the product of that working                                                               
group.  It  has   been  introduced  and  passed   in  12  states,                                                               
introduced  in  20 other  states  including  Alaska and  4  other                                                               
states are considering introduction.                                                                                            
A list of  cigarettes and companies that are  permitted in Alaska                                                               
would  be created.  A distributor  could review  the list  on the                                                               
Department of Revenue website to  determine which cigarettes they                                                               
are  able  to  sell  in  the state,  order  them  and  sell  them                                                               
accordingly.  To get  on the  list, a  tobacco manufacturer  must                                                               
either certify  they are a  participating manufacturer  under the                                                               
MSA or  certify they are  a NPM and  they are in  compliance with                                                               
the  law.  The bill  provides  penalties  for non-compliance  and                                                               
requires NPMs to register or appoint an in-state agent.                                                                         
If a distributor  brings in cigarettes that are  on the permitted                                                               
list,  but the  manufacturer  is subsequently  removed from  that                                                               
list  there  is  a  tax credit  available  for  the  distributor.                                                               
Finally, if  a NPM refuses  to comply  and the department  has to                                                               
sue,  the  department is  able  to  carry  the complaint  to  the                                                               
Department of Community and Economic Development.                                                                               
CHAIR GARY STEVENS recapped the provisions of the bill.                                                                         
SENATOR  JOHN COWDERY  asked if  the state  knew which  companies                                                               
were trying to avoid paying.                                                                                                    
MR.  BARNHILL replied  the  department  has a  list  of about  15                                                               
companies on a contraband list.                                                                                                 
JOHANNA  D. BALES,  Department of  Revenue, said  she administers                                                               
the tobacco  and cigarette products  excise program  and enforces                                                               
the NPM  statute. In what appears  to be an attempt  to avoid the                                                               
escrow payment,  new manufacturers and  brands appear on  a daily                                                               
basis.  Under this  law the  manufacturers would  be required  to                                                               
give their information  to the department prior  to selling their                                                               
product. This  year there are  five or six new  manufacturers and                                                               
it  remains  to be  seen  whether  they  will make  their  escrow                                                               
payments.  From that  standpoint, this  is important  legislation                                                               
because it places the responsibility on the manufacturers.                                                                      
SENATOR  COWDERY asked  if residents  could  import personal  use                                                               
MS. BALES  said they could if  the manufacturer was on  the list.                                                               
An individual who  brings in tobacco for  personal consumption is                                                               
treated  no differently  than any  other taxpayer.  They must  be                                                               
licensed with  the Department  of Revenue  prior to  bringing the                                                               
cigarettes in under existing tobacco legislation.                                                                               
SENATOR COWDERY asked about duty free purchases.                                                                                
MS. BALES explained recent changes  in both federal and state law                                                               
restrict those purchases for in-state use.                                                                                      
SENATOR COWDERY asked about tobacco sales other than cigarettes.                                                                
MS.  BALES said  just  cigarettes and  tobacco for  roll-your-own                                                               
cigarettes are covered under the MSA.                                                                                           
CHAIR GARY STEVENS asked whether  military personnel or fishermen                                                               
who buy  substantial amounts of  tobacco in Seattle and  bring it                                                               
to Alaska were beyond the scope of the bill.                                                                                    
MS.   BALES  replied   they  would   be  subject   to  the   same                                                               
requirements. If the cigarettes were brought within the three-                                                                  
mile limit the tax would be due.                                                                                                
CHAIR GARY STEVENS verified that  the wholesaler in Seattle would                                                               
be obliged to make sure the tax was paid.                                                                                       
MS. BALES agreed.                                                                                                               
SENATOR COWDERY asked for the definition of a cigarette.                                                                        
MS. BALES  defined it  as a  tobacco product  that is  wrapped in                                                               
paper.  Roll-your-own meets  that definition  if that  product is                                                               
intended  to make  a  cigarette. This  bill  wouldn't change  the                                                               
There were no further questions.                                                                                                
SENATOR COWDERY made a motion to  move SB 162 and attached fiscal                                                               
note  from committee  with individual  recommendations. He  asked                                                               
for  unanimous  consent. There  being  no  objection, it  was  so                                                               
          SB 119-APOC/ CAMPAIGNS/ LOBBYING/ DISCLOSURE                                                                      
CHAIR  GARY STEVENS  asked for  a motion  to adopt  the committee                                                               
substitute (CS).                                                                                                                
SENATOR JOHN  COWDERY made  a motion to  adopt CSSB  119 bil2.doc                                                               
dated 4/15/03 for discussion purposes. There was no objection.                                                                  
CHAIR GARY  STEVENS explained  this is  a Governor's  bill, which                                                               
would  eliminate  the Alaska  Public  Office  Commission. The  CS                                                               
would   not  eliminate   the  commission,   but  it   would  make                                                               
substantial changes.                                                                                                            
SENATOR  COWDERY  asked for  the  differences  between this  work                                                               
draft and the one dated 4/14/03.                                                                                                
KEVIN  JARDELL, Assistant  Commissioner  with  the Department  of                                                               
Administration,  explained  there  were  no  substantive  changes                                                               
between the two. The changes were technical clean up.                                                                           
The original intent  of the legislation was  to address candidate                                                               
frustrations with  APOC and the  current financial laws.  Many of                                                               
the frustrations  came from not  having a mechanism to  allow for                                                               
an  expedited process  to  stop ongoing  violations  prior to  an                                                               
election.  After the  legislation  was  introduced, APOC  stepped                                                               
forward with ideas to fix  the problem areas they had identified.                                                               
The changes are significant and deserve attention.                                                                              
BROOKE MILES,  APOC Executive Director, briefed  the committee on                                                               
the bill.                                                                                                                       
   · Raises annual campaign contribution limits for individuals                                                                 
     to contribute to candidates or groups - political action                                                                   
    committees (PACs) from $500 per year to $1,000 per year                                                                     
   · For individuals to contribute to political parties from                                                                    
     $5,000 per year to $10,000 per year                                                                                        
   · For groups (PACs) to contribute to candidates from $1,000                                                                  
     under current law to $5,000 per year                                                                                       
   · For groups (PACs) to contribute to political parties from                                                                  
     $1,000 to $10,000                                                                                                          
Non-group entities  or non-profit organizations  that participate                                                               
differently than PACs:                                                                                                          
   · Non-group entity to a candidate is raised from $500 to                                                                     
SENATOR  COWDERY asked  whether  a candidate  could give  surplus                                                               
campaign   funds  to   a  non-profit   and,  assuming   that  was                                                               
acceptable, how the non-profit could use those funds.                                                                           
MS. MILES told him a candidate could give surplus fund to a non-                                                                
profit and  that wouldn't change  under SB 119. She  continued to                                                               
explain  non-profit  corporations  that form  non-group  entities                                                               
must  comply with  campaign disclosure  laws.  They could  accept                                                               
contributions from  individuals of  up to $1,000.  Ninety percent                                                               
of those individuals  would have to be Alaska  residents and they                                                               
would have to report just as a group or candidate reports.                                                                      
SENATOR COWDERY asked  if a candidate could give money  to a non-                                                               
profit then get it back in the next campaign.                                                                                   
MS. MILES  thought that  was acceptable  but the  candidate could                                                               
get just $1,000 back.                                                                                                           
CHAIR  GARY  STEVENS  asked  if a  candidate's  church  would  be                                                               
required to report a $500 contribution.                                                                                         
MS. MILES  replied churches  don't have to  report to  APOC. Many                                                               
charitable organizations don't have  non-group entities. There is                                                               
a  requirement in  law that  a non-group  entity register  as the                                                               
entity that  would participate in  political activities  and file                                                               
campaign  disclosure  reports.  For  instance,  Boy  Scouts,  Big                                                               
Brothers Big Sisters don't have non-group entities.                                                                             
MS. MILES explained:                                                                                                            
   · SB 119 removes municipal elections and candidates from the                                                                 
     state campaign disclosure law. The commission feels that                                                                   
     should be carefully considered and perhaps conceptually                                                                    
     plan for  a way that  municipalities could opt into  the law                                                               
     and pay a user fee to  the state for doing that. The current                                                               
     campaign disclosure law  was enacted in the  early 1970s and                                                               
     municipalities  have been  part of  it. That  isn't an  area                                                               
     that the  commission is  very effective  given there  are 31                                                               
     communities that are  subject to the law  and the commission                                                               
     has limited resources.                                                                                                     
CHAIR  GARY STEVENS  remarked school  boards,  city councils  and                                                               
borough assemblies  must have  accounted for  enormous quantities                                                               
of paperwork.                                                                                                                   
MS. MILES  replied the financial  disclosure statements  and some                                                               
campaign  disclosure  reports are  opted  out  in SB  119.  Under                                                               
current law  a candidate can file  a form stating he  or she will                                                               
not  spend  more  than  $2,500  on their  campaign  and  in  many                                                               
communities  all  school board  and  some  assembly members  file                                                               
under that  exemption but they  still needed to file  a financial                                                               
disclosure statement. In  the years the commission  staff is very                                                               
busy  with  state  elections,  it's   quite  an  effort  for  the                                                               
commission  to  get  materials  out  for  the  October  municipal                                                               
CHAIR GARY STEVENS  said that's all been eliminated  in this bill                                                               
but  there may  be  some option  to  buy into  the  system if  so                                                               
MS.  MILES  replied  that  was   correct,  availability  was  the                                                               
commission's concern.                                                                                                           
SENATOR COWDERY  asked if school districts  have ever contributed                                                               
to APOC.                                                                                                                        
MS. MILES  replied they haven't  in the  20 years she  has worked                                                               
with the commission.                                                                                                            
SENATOR COWDERY  asked how they'd  determine a value  they wanted                                                               
to opt in at now.                                                                                                               
MS. MILES  said they haven't had  time to consider that  yet, but                                                               
it would  probably need to be  based on the number  of candidates                                                               
and the number  of reports they would be required  to file so the                                                               
cost would be fair to each community.                                                                                           
SENATOR COWDERY asked  for verification that they  could do their                                                               
MS. MILES said they could.  Other states frequently have separate                                                               
municipal  coverage for  each community  so they  could determine                                                               
their  own campaign  disclosure  limits. The  commission has  set                                                               
limits that are practical to  state campaigns, but a municipality                                                               
might elect to have a lower limit.                                                                                              
SIDE B                                                                                                                        
10:00 am                                                                                                                      
SENATOR  COWDERY asked  how  the new  limits  compare with  other                                                               
MS. MILES replied it's in the middle.                                                                                           
CHAIR GARY  STEVENS asked  about municipalities  that opt  in and                                                               
remarked they  don't appear  to get much  service. He  then asked                                                               
whether the  commission analyzed  the financial  disclosures from                                                               
city councils and  borough assemblies or did  anything that might                                                               
be seen as a benefit to the municipalities.                                                                                     
MS.  MILES said  the commission  has a  manager of  the financial                                                               
disclosure law  and she  reviews each  state filing  from judges,                                                               
directors,  commissioners,  or  legislators, but  she  only  does                                                               
municipal filings every other year.                                                                                             
CHAIR GARY STEVENS  opined it's good for the state  to get out of                                                               
that business.  It's not a  state responsibility  and eliminating                                                               
municipalities is wise.                                                                                                         
MS. MILES continued:                                                                                                            
   · SB 119 removes the requirement to file the ten day after                                                                   
     campaign disclosure  report. This  report is  required after                                                               
     the  election  when  interest  is no  longer  high,  but  it                                                               
     doesn't  include   the  total  cost  of   the  election.  In                                                               
     addition, this  legislation requires the year-end  report to                                                               
     be filed  on February 15. It  must contain all the  costs of                                                               
     the election and all disbursements  must be made by February                                                               
   · Added is a requirement to file a report 90 days after a                                                                    
     special election. This was a  technical requirement that was                                                               
     needed when the  reporting period for state  candidates in a                                                               
     regular election was moved to February 1.                                                                                  
SENATOR COWDERY asked what circumstances  might require a special                                                               
MS. MILES replied  they aren't very common but  the bill drafters                                                               
wanted  to  make sure  that  whatever  activity  was in  a  state                                                               
special election was captured in the campaign disclosure law.                                                                   
   · The bill would require candidates and groups to report the                                                                 
     names and  addresses of all contributors,  regardless of the                                                               
     amount.  For   contributors  giving   more  than   $250  the                                                               
     candidate and group  would also be required  to report their                                                               
     occupation and  employer. Currently individuals  giving less                                                               
     than $100  are given  a head count  while those  giving more                                                               
     must  give  name,  address,  occupation  and  employer.  The                                                               
     changes look  forward to  the day  when there  is electronic                                                               
     filing.  Because  a  candidate  is  required  to  keep  that                                                               
     information, as  are groups,  it was  considered expeditious                                                               
     to  have it  all  reported. The  detailed reporting  doesn't                                                               
     come until after $250.                                                                                                     
CHAIR GARY  STEVENS asked  what the  rationale was  for reporting                                                               
every contribution including names, even those under $100.                                                                      
MS. MILES  said it's  simply because  candidates are  required to                                                               
keep those records and, once  electronic filing is standard, that                                                               
information would need to be entered.                                                                                           
SENATOR COWDERY asked  about cases in which  a candidate receives                                                               
a contribution and  doesn't know any of  the required information                                                               
about the contributor.                                                                                                          
MS. MILES  explained the commission  has a regulation  and policy                                                               
regarding  good   faith  effort   to  determine   occupation  and                                                               
She continued:                                                                                                                  
   · Although the detailed reporting threshold has been                                                                         
     increased to $250  and they ask for the name  and address of                                                               
     everyone, the  commission has moved exempt  fundraisers into                                                               
   · The limit that people could give to candidates was                                                                         
     increased from $250 to $500.  The commission looks upon that                                                               
     as an  inflationary increase.   This applies to  leaflets or                                                               
     yard signs that an individual pays for.                                                                                    
   · For campaign disclosure, financial disclosure and for                                                                      
     lobbying  the   bill  prepares  the  ground   for  mandatory                                                               
     electronic   filing.  Exemptions   would  be   available  as                                                               
     appropriate. The commission would  provide support for those                                                               
     not  in  the computer  age,  but  that  would likely  be  an                                                               
CHAIR  GARY  STEVENS  observed   electronic  filing  would  be  a                                                               
substantial cost savings in terms of doing business.                                                                            
MS.  MILES agreed  and added  it  would allow  a reallocation  of                                                               
staff resources to provide increased training and support.                                                                      
She continued:                                                                                                                  
   · The bill would remove the prohibition on lobbyists making a                                                                
     lawful  campaign contribution  to candidates  living outside                                                               
     the   lobbyist's  district.   The  restrictions   under  the                                                               
     lobbying law that prohibit  lobbyists from being treasurers,                                                               
     deputy   treasurers,   campaign  managers   and   delivering                                                               
     contributions would  remain. The lobbyist would  be required                                                               
     to report the contributions made to candidates.                                                                            
CHAIR GARY STEVENS asked for the definition of lobbyist.                                                                        
MS. MILES defined a lobbyist as  a person who is paid to directly                                                               
communicate  with  public officials  in  an  effort to  influence                                                               
official  action. If  the  person is  an  occasional lobbyist,  a                                                               
regular employee of  a company, they would be subject  to the law                                                               
once they  spend 16  hours in a  thirty day  period communicating                                                               
directly with  public officials in efforts  to influence official                                                               
SENATOR   COWDERY   asked    about   school   children   visiting                                                               
MS. MILES replied  they aren't paid. If the  group had reimbursed                                                               
expenses and spent  more than 16 hours in a  30 day period they'd                                                               
be  required  to  file  as   a  representational  lobbyist.  They                                                               
wouldn't be  required to pay the  fee and wouldn't be  subject to                                                               
the fund raising restrictions. The  company would simply file the                                                               
report disclosing the expenses.                                                                                                 
CHAIR GARY STEVENS  stated, a locally elected  official may spend                                                               
more  than 16  hours,  but  they aren't  paid  so  they would  be                                                               
exempted under this proposal.                                                                                                   
MS. MILES replied  current law exempts all  elected and appointed                                                               
state and municipal officials from these provisions.                                                                            
SENATOR COWDERY asked if a  dinner engagement would figure in the                                                               
MS. MILES replied  it would for the salaried person,  but not for                                                               
children visiting their legislator.                                                                                             
SENATOR COWDERY asked if that was 16 hours in a 30 day period.                                                                  
MS. MILES  said it was  and that is  four times greater  than the                                                               
existing regulation and it is put into statute.                                                                                 
SENATOR COWDERY asked  about the person that lobbies  20 hours in                                                               
one month then never returns to lobby again.                                                                                    
MS.  MILES explained  that for  purposes of  being a  fundraiser,                                                               
that person  would be considered  to be  a lobbyist for  one year                                                               
from the date  of the last registration. As far  as being subject                                                               
to the lobbying law filing  reports, after they've filed the last                                                               
report  of compensation  paid to  them for  lobbying, they  could                                                               
terminate and that would end their report filing obligation.                                                                    
She continued:                                                                                                                  
   · The bill repeals the legislative session bans on soliciting                                                                
     or accepting campaign contributions for legislative and                                                                    
     gubernatorial candidates.                                                                                                  
        · She added, campaign disclosure law doesn't prohibit                                                                   
          accepting a  contribution during the session;  it's the                                                               
          legislative ethics law. The  Alaska State Supreme Court                                                               
          said  this  was  not  constitutional  and  specifically                                                               
          struck  it from  one  side of  the campaign  disclosure                                                               
          law, but  inadvertently left it on  another side making                                                               
          this a housekeeping measure.                                                                                          
SENATOR COWDERY  asked if that  meant he could have  a fundraiser                                                               
during session.                                                                                                                 
MS. MILES advised he could  under campaign disclosure law, but he                                                               
would be in violation under legislative ethics law.                                                                             
SENATOR  COWDERY asked  why the  ethics  law was  in conflict  in                                                               
light of the supreme court ruling.                                                                                              
MR.  JARDELL understood  the supreme  court  was recognizing  the                                                               
inherent  authority of  the body  to police  itself. If  the body                                                               
imposes the requirement, it is different than the statute.                                                                      
MS. MILES continued:                                                                                                            
   · The CS would repeal the requirement that a candidate notify                                                                
     APOC within  five days when  he or she makes  a contribution                                                               
     to  their own  campaign with  the hope  that will  be repaid                                                               
     once  there   are  surplus  funds.  On   the  next  campaign                                                               
     disclosure report  the candidate  would indicate  whether or                                                               
     not they  would like to  recoup the contribution  if surplus                                                               
    funds were available. The recoup limit remains the same.                                                                    
   · This allows complaint violations to be expedited by the                                                                    
     commission in appropriate circumstances.                                                                                   
        · APOC would have to hold a hearing within 48 hours.                                                                    
        · It would give APOC a cease and desist authority for                                                                   
        · The CS moves the complaint process into statute and                                                                   
          requires a 15 day response and 90 days is the maximum                                                                 
          from complaint to adjudication under any circumstance.                                                                
   · This shortens the time period for bringing the statute of                                                                  
     limitations  on bringing  an  administrative complaint  from                                                               
     four years to one year.                                                                                                    
   · It amends the definition of political party to be the same                                                                 
     as the definition used by the Division of Elections.                                                                       
   · On the financial disclosure statement for legislators, the                                                                 
     source of income  threshold would be raised  to $10,000 from                                                               
SENATOR  COWDERY   asked  why  public  officials   must  disclose                                                               
property ownership.                                                                                                             
MS. MILES replied  real property has always been part  of the law                                                               
written  by  citizen initiative.  If  the  property is  sold  and                                                               
valued at more  than $10,000, the name of the  purchaser would be                                                               
disclosed  as  well. If  the  property  were gifted,  the  public                                                               
official  would still  need  to  show they  no  longer owned  the                                                               
CHAIR  GARY  STEVENS  referred  to  page 25  of  the  work  draft                                                               
regarding   sources   of   income.   He  noted   there   was   no                                                               
differentiation between  child and  dependent child and  asked if                                                               
he would be expected to disclose  his son's employer who lives in                                                               
San  Diego  or  his  daughter's  employer who  is  a  teacher  in                                                               
MS.  MILES  replied   under  AS  39.50  and   AS  24.60.200,  the                                                               
definition section, child only applies to dependent child.                                                                      
SENATOR COWDERY asked her to clarify  that and make it a proposed                                                               
CHAIR GARY  STEVENS agreed that  would be  a good idea.  He noted                                                               
this includes  page 25, line  11, line 25,  line 27 and  page 26,                                                               
line 1, line 11, line 17.                                                                                                       
MS. MILES replied  under AS 39.50.400 H1, child  means a person's                                                               
dependent child or  a person's non-dependent child  who is living                                                               
with the person.                                                                                                                
CHAIR GARY STEVENS expressed comfort with that clarification.                                                                   
SENATOR COWDERY  wanted to see  reference to the statute  to make                                                               
it clear.                                                                                                                       
MS. MILES continued:                                                                                                            
   · With regard to publicly traded stock holdings, they made an                                                                
    exception when the filers interest is less than $10,000                                                                     
That concluded the summary.                                                                                                     
CHAIR GARY STEVENS  asked about the differences  between the Poet                                                               
Account and the Account Poet Reserve.                                                                                           
MS.  MILES said  they didn't  address  that and  frankly she  has                                                               
never understood  it. Senator Donley  asked that there be  a Poet                                                               
Reserve Account where candidates could  put all the money allowed                                                               
for transfer  for the term of  office. She thought it  was $5,000                                                               
per year  so some Senators  might have $20,000 and  House members                                                               
might have $10,000. In the original  law they could put the money                                                               
in an  office account that was  named "Poet" by a  creative staff                                                               
member.  Senator  Donley determined  there  was  a tax  liability                                                               
question with  the money in  the Poet  Account so he  created the                                                               
Poet Reserve Account.  The law requires a candidate  to have both                                                               
accounts. They  must put  the money in  the reserve  account then                                                               
transfer  it  out  at  $5,000   per  year.  It's  a  problem  for                                                               
candidates and she's sorry it's  not included in the proposed CS.                                                               
If  legislators  want  just  one   Poet  Account  the  commission                                                               
wouldn't take issue with that.                                                                                                  
She added,  with reapportionment and knowing  some Senators would                                                               
have two  year terms,  the commission made  an exception  in 2002                                                               
and allowed some Senators to keep $20,000 for a two year term.                                                                  
CHAIR  GARY   STEVENS  remarked  it's  confusing   and  he  would                                                               
certainly like to see some clarification of the issue.                                                                          
SENATOR  COWDERY  said  it  could be  addressed  in  the  Finance                                                               
There was an  inaudible response from Mr. Jardell  who was seated                                                               
in the audience.                                                                                                                
SENATOR COWDERY asked  how much this would  reduce the commission                                                               
MS. MILES  replied it was  difficult to quantify.  Paper printing                                                               
and  postage  would  amount  to   about  $5,000.  Once  there  is                                                               
electronic filing,  there would  be additional reductions  due to                                                               
staff reallocation.                                                                                                             
SENATOR COWDERY asked how many staff APOC had currently.                                                                        
MS. MILES  replied there  are ten  full time  staff and  one part                                                               
time staff. The  Juneau administrator that does  the lobbying law                                                               
is  full  time  and  they  have  part  time  clerical  staff.  In                                                               
Anchorage  there are  nine staff.  The current  budget is  $752.6                                                               
with just  enough contractual services  to conduct  business. The                                                               
commission  will  have  to meet  more  frequently  to  adjudicate                                                               
CHAIR  GARY   STEVENS  asked  about  the   cost  associated  with                                                               
electronic filing.                                                                                                              
MS.  MILES replied  it is  substantial  and is  currently in  the                                                               
Governor's  Capital  Budget  funding   request  for  a  one  time                                                               
$450,000 for campaign  disclosure, lobbying, financial disclosure                                                               
for legislators and all public officials.                                                                                       
CHAIR  GARY  STEVENS  asked  if  it was  for  new  equipment  and                                                               
MS. MILES advised  it was mostly for  programming. Fifty thousand                                                               
dollars  is in  hardware.  It's a  one-time  expense after  which                                                               
there would just be standard agency support for software.                                                                       
SENATOR COWDERY  made a  motion to adopt  amendment #1  to remove                                                               
"spousal  equivalent" wherever  it  appears and  replace it  with                                                               
"domestic partner" or other appropriate language.                                                                               
CHAIR  GARY  STEVENS  asked  if   Ms.  Miles  could  outline  the                                                               
MR. JARDELL said,                                                                                                               
     The  intent is  to recognize  the sanctity  of marriage                                                                    
     and  the  spouse,  but  there  is  no  true  equivalent                                                                    
     partner  or other  relationship  with a  spouse and  in                                                                    
     recognizing  that respect  I  think the  Administration                                                                    
     would support the concept and idea behind that.                                                                            
It's a  legal and social equivalent.  Senator Cowdery's amendment                                                               
is conceptual and would give the  drafters the ability to get the                                                               
substance of the law.                                                                                                           
CHAIR GARY STEVENS  asked if there was objection  to amendment #1                                                               
and there was none.                                                                                                             
MR.  JARDELL   suggested  amendment   #2  to   remove  occupation                                                               
information when  the contribution is  under $250. This  clears a                                                               
drafting error because the drafters intended to remove it.                                                                      
SENATOR  COWDERY  moved  conceptual amendment  #2  as  suggested.                                                               
There was no objection.                                                                                                         
CHAIR GARY  STEVENS made a  motion to adopt  conceptual amendment                                                               
#3 to clarify that any  reference to child meant dependent child.                                                               
There was no objection.                                                                                                         
LAURIE CHURCHILL  from Nikiski testified  she was  concerned with                                                               
significant  changes  that  would  impair  the  general  public's                                                               
availability  for   public  information   as  far   as  financial                                                               
disclosures.  They want  to ensure  APOC is  able to  function to                                                               
provide educational information to the public.                                                                                  
CHAIR GARY STEVENS  remarked there would be  real advantages with                                                               
electronic  filing  and  with regard  to  full  disclosure,  it's                                                               
important to know who contributed to which campaign immediately.                                                                
SENATOR  COWDERY  made a  motion  to  move  CSSB 119  (STA)  from                                                               
committee with individual  recommendations and attached, revised,                                                               
fiscal notes. There being no objection, it was so ordered.                                                                      
        HB  34-REPEAL SUNSET OF NEGOTIATED REG.MAKING                                                                       
BARBARA COTTING,  staff to  Representative Jim  Holm, paraphrased                                                               
from the sponsor statement:                                                                                                     
     A  process called  negotiated  regulation making  (Neg-                                                                    
     Reg) was  authorized in  statute in  SLA 1998,  Ch 117.                                                                    
     The original  bill, HB 264,  has a sunset date  of July                                                                    
     1, 2003. HB  34 repeals that sunset,  thus allowing the                                                                    
     Neg-Reg process to continue.                                                                                               
     Negotiated  regulation   making  is   widely  supported                                                                    
     because  it makes  the regulation-writing  process more                                                                    
     applicable to  reality. It allows  a team  of affected,                                                                    
     interested    parties   to    negotiate   and    submit                                                                    
     recommendations  before the  regulations are  published                                                                    
     for public review.                                                                                                         
     Most notable  successes to date  have been  cruise ship                                                                    
     regulations  and  charitable  gaming  regulations,  two                                                                    
     extremely  contentious   issues  that   were  favorably                                                                    
     resolved  using  the   negotiated  regulation  process.                                                                    
     Though  it  does  involve   some  up-front  efforts  to                                                                    
     assemble  the negotiating  team, it  saves far  more at                                                                    
     the other  end of  the process by  eliminating lawsuits                                                                    
     and lengthy public appeals.                                                                                                
     Another  important  advantage   is  that  the  affected                                                                    
     industries  are  involved  from the  beginning  so  the                                                                    
     resulting   regulations   are   far   more   practical,                                                                    
     enforceable, and business-friendly.                                                                                        
     Passage  of   HB  34  before   the  end  of   the  2003                                                                    
     legislative  session will  allow this  valuable Neg-Reg                                                                    
     process to remain in statute.                                                                                              
TAPE 3-20 SIDE A                                                                                                              
10:45 am                                                                                                                      
Examples of how  this process has been  successfully used include                                                               
the Department  of Environmental Conservation and  the Department                                                               
of Revenue with cruise ship  waste disposal and charitable gaming                                                               
regulations.  An  advantage  to  this process  is  it  eliminates                                                               
public  appeals  and lawsuits  after  the  regulations have  been                                                               
implemented. She noted the two zero fiscal notes.                                                                               
CHAIR GARY  STEVENS noted Craig  Tillery was available  to answer                                                               
SENATOR JOHN COWDERY asked how often this was used.                                                                             
CRAIG TILLERY  from the Department  of Law stated  the negotiated                                                               
rule making has  been used twice that he's aware  of. It was also                                                               
used as a  model with respect to non-tank  vessel legislation and                                                               
SENATOR COWDERY  asked what negative  impact would result  if the                                                               
law were to sunset on July 1.                                                                                                   
MR.  TILLERY replied  the negative  impact  is the  law would  no                                                               
longer be available. The Administration  has taken no position on                                                               
the bill. The  department has reviewed it and there  are no legal                                                               
problems the way  it is drafted. It's a rare  tool but works well                                                               
in some instances and has a place in the toolbox.                                                                               
SENATOR COWDERY made  a motion to move HB 34  from committee with                                                               
individual  recommendations and  attached fiscal  note. He  asked                                                               
for  unanimous  consent. There  being  no  objection, it  was  so                                                               
               HB 114-ISSUANCE OF SEARCH WARRANTS                                                                           
DOUG  WOOLIVER, Administrative  Attorney  with  the Alaska  Court                                                               
System, explained the  bill was introduced at the  request of the                                                               
Alaska Supreme Court to address  a technical problem with the way                                                               
judges are allowed  to accept testimony from  peace officers that                                                               
are requesting a  search warrant. Typically an  officer fills out                                                               
an affidavit, signs  it, takes it to court, and  is available for                                                               
questions. The  officer could  also drop  the affidavit  with the                                                               
court  and  the  judge  could   make  a  decision  based  on  the                                                               
application itself.  The problem  arises when  the judge  and the                                                               
officer  aren't  in the  same  community,  which is  frequent  in                                                               
Alaska.  In circumstances  where the  item to  be searched  is in                                                               
danger  of  being lost  or  destroyed  the  officer may  fax  the                                                               
application for  a search warrant and  testify telephonically. In                                                               
many cases that standard can't be met.                                                                                          
This bill  adds one sentence  to the law  that allows a  judge to                                                               
accept a  faxed affidavit  or telephonic  testimony so  the judge                                                               
can take into  account the practical impact the  delay would have                                                               
on the investigation. The language  adds "or would interfere with                                                               
an  ongoing  investigation".  It  in no  way  changes  all  other                                                               
factors that  govern the issuance  of a search warrant.  The bill                                                               
was  drafted  with  input  from the  Department  of  Law,  Public                                                               
Defender Agency, the Alaska Court System, and the Alaska State                                                                  
There were no questions or comments.                                                                                            
CHAIR GARY STEVENS asked for a motion.                                                                                          
SENATOR JOHN COWDERY made a motion  to move CSHB 114 (JUD) (title                                                               
am) from  committee with the  accompanying fiscal note.  He asked                                                               
for  unanimous  consent. There  being  no  objection, it  was  so                                                               
There being no further business to come before the committee,                                                                   
Chair Gary Stevens adjourned the meeting at 11:00 am.                                                                           

Document Name Date/Time Subjects